AUD/CAD is trading at 0.9111
MUFG Reserach recommends selling AUD/CAD in its weekly FX pick.
They sell from spot with a target at 0.8850 and a stop at 0.9350.
“We are recommending a long CAD/AUD trade idea to reflect the widening divergence between the BOC and RBA monetary policies. We expect the BOC to announce a further tapering of QE purchases at their next meeting on 27th October and is on track to bring an end to tapering by the end of this year,” MUFG writes.
“In contrast, the RBA continues to reiterate that it has no plans to raise rates in the coming years and will not reassess the pace of E tapering until at least February.”